Xbox employees test disc-to-digital conversion feature

Microsoft is reportedly preparing to phase out physical game discs for Xbox titles, much like Sony has done. The company has been developing a disc-to-digital system that lets owners turn their existing collections into digital versions, according to people familiar with the plans.

Microsoft plans to digitize physical Xbox games. Internal testing of the capability began recently, after code referencing "enable Disc2Digital" surfaced in the Xbox PC app during May. The function works only with Xbox One and Xbox Series X discs and excludes those from the Xbox 360 or the original Xbox.

Disc-to-digital process requires a Microsoft account. Owners insert a supported disc, install the game, and play it to receive a digital entitlement linked directly to that physical media. This license follows the disc across accounts, allowing play when swapped with others or used under a different profile on the same console.

The resulting entitlement behaves like a purchase made through Microsoft's digital storefront. Owners with a Game Pass subscription can stream compatible titles on Xbox Cloud Gaming, while Xbox Play Anywhere games become available on PCs and handhelds as well.

Feature supports bundled discs and multi-disc titles. The system accommodates console-bundled discs and multi-disc releases, unlocking all standard content including add-ons and extras. Certain Xbox One discs may prove incompatible, however, since support hinges on manufacturing details and timing.

Microsoft has cautioned its internal Xbox testers that "It all depends on how and when the disc was manufactured and it may not have the features we need for this program." Physical discs remain fully usable after conversion, with the digital license revoked only upon loaning or selling the media.

Next-generation Xbox considerations remain open. The company has yet to decide whether its upcoming console, known internally as Project Helix, will include a disc drive. Without one, the new conversion tool would become vital for current owners transitioning their libraries.